Registration and Regulation Committee

Adopted in House Comm. on May 06, 2004

 

 


 

 


 
09300SB2887ham001 LRB093 20864 AMC 50020 a

1
AMENDMENT TO SENATE BILL 2887

2     AMENDMENT NO. ______. Amend Senate Bill 2887 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Real Estate License Act of 2000 is amended
5 by changing Sections 1-10, 5-30, 5-50, 5-70, and 20-20 and by
6 adding Section 15-75 as follows:
 
7     (225 ILCS 454/1-10)
8     (Section scheduled to be repealed on January 1, 2010)
9     Sec. 1-10. Definitions. In this Act, unless the context
10 otherwise requires:
11     "Act" means the Real Estate License Act of 2000.
12     "Advisory Council" means the Real Estate Education
13 Advisory Council created under Section 30-10 of this Act.
14     "Agency" means a relationship in which a real estate broker
15 or licensee, whether directly or through an affiliated
16 licensee, represents a consumer by the consumer's consent,
17 whether express or implied, in a real property transaction.
18     "Applicant" means any person, as defined in this Section,
19 who applies to OBRE for a valid license as a real estate
20 broker, real estate salesperson, or leasing agent.
21     "Blind advertisement" means any real estate advertisement
22 that does not include the sponsoring broker's business name and
23 that is used by any licensee regarding the sale or lease of
24 real estate, including his or her own, licensed activities, or

 

 

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1 the hiring of any licensee under this Act. The broker's
2 business name in the case of a franchise shall include the
3 franchise affiliation as well as the name of the individual
4 firm.
5     "Board" means the Real Estate Administration and
6 Disciplinary Board of OBRE.
7     "Branch office" means a sponsoring broker's office other
8 than the sponsoring broker's principal office.
9     "Broker" means an individual, partnership, limited
10 liability company, corporation, or registered limited
11 liability partnership other than a real estate salesperson or
12 leasing agent who for another and for compensation, or with the
13 intention or expectation of receiving compensation, either
14 directly or indirectly:
15         (1) Sells, exchanges, purchases, rents, or leases real
16     estate.
17         (2) Offers to sell, exchange, purchase, rent, or lease
18     real estate.
19         (3) Negotiates, offers, attempts, or agrees to
20     negotiate the sale, exchange, purchase, rental, or leasing
21     of real estate.
22         (4) Lists, offers, attempts, or agrees to list real
23     estate for sale, lease, or exchange.
24         (5) Buys, sells, offers to buy or sell, or otherwise
25     deals in options on real estate or improvements thereon.
26         (6) Supervises the collection, offer, attempt, or
27     agreement to collect rent for the use of real estate.
28         (7) Advertises or represents himself or herself as
29     being engaged in the business of buying, selling,
30     exchanging, renting, or leasing real estate.
31         (8) Assists or directs in procuring or referring of
32     prospects, intended to result in the sale, exchange, lease,
33     or rental of real estate.
34         (9) Assists or directs in the negotiation of any

 

 

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1     transaction intended to result in the sale, exchange,
2     lease, or rental of real estate.
3         (10) Opens real estate to the public for marketing
4     purposes.
5         (11) Sells, leases, or offers for sale or lease real
6     estate at auction.
7     "Brokerage agreement" means a written or oral agreement
8 between a sponsoring broker and a consumer for licensed
9 activities to be provided to a consumer in return for
10 compensation or the right to receive compensation from another.
11 Brokerage agreements may constitute either a bilateral or a
12 unilateral agreement between the broker and the broker's client
13 depending upon the content of the brokerage agreement. All
14 exclusive brokerage agreements shall be in writing.
15     "Client" means a person who is being represented by a
16 licensee.
17     "Commissioner" means the Commissioner of Banks and Real
18 Estate or a person authorized by the Commissioner, the Office
19 of Banks and Real Estate Act, or this Act to act in the
20 Commissioner's stead.
21     "Compensation" means the valuable consideration given by
22 one person or entity to another person or entity in exchange
23 for the performance of some activity or service. Compensation
24 shall include the transfer of valuable consideration,
25 including without limitation the following:
26         (1) commissions;
27         (2) referral fees;
28         (3) bonuses;
29         (4) prizes;
30         (5) merchandise;
31         (6) finder fees;
32         (7) performance of services;
33         (8) coupons or gift certificates;
34         (9) discounts;

 

 

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1         (10) rebates;
2         (11) a chance to win a raffle, drawing, lottery, or
3     similar game of chance not prohibited by any other law or
4     statute;
5         (12) retainer fee; or
6         (13) salary.
7     "Confidential information" means information obtained by a
8 licensee from a client during the term of a brokerage agreement
9 that (i) was made confidential by the written request or
10 written instruction of the client, (ii) deals with the
11 negotiating position of the client, or (iii) is information the
12 disclosure of which could materially harm the negotiating
13 position of the client, unless at any time:
14         (1) the client permits the disclosure of information
15     given by that client by word or conduct;
16         (2) the disclosure is required by law; or
17         (3) the information becomes public from a source other
18     than the licensee.
19     "Confidential information" shall not be considered to
20 include material information about the physical condition of
21 the property.
22     "Consumer" means a person or entity seeking or receiving
23 licensed activities.
24     "Continuing education school" means any person licensed by
25 OBRE as a school for continuing education in accordance with
26 Section 30-15 of this Act.
27     "Credit hour" means 50 minutes of classroom instruction in
28 course work that meets the requirements set forth in rules
29 adopted by OBRE.
30     "Customer" means a consumer who is not being represented by
31 the licensee but for whom the licensee is performing
32 ministerial acts.
33     "Designated agency" means a contractual relationship
34 between a sponsoring broker and a client under Section 15-50 of

 

 

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1 this Act in which one or more licensees associated with or
2 employed by the broker are designated as agent of the client.
3     "Designated agent" means a sponsored licensee named by a
4 sponsoring broker as the legal agent of a client, as provided
5 for in Section 15-50 of this Act.
6     "Director" means the Director of the Real Estate Division,
7 OBRE.
8     "Dual agency" means an agency relationship in which a
9 licensee is representing both buyer and seller or both landlord
10 and tenant in the same transaction. When the agency
11 relationship is a designated agency, the question of whether
12 there is a dual agency shall be determined by the agency
13 relationships of the designated agent of the parties and not of
14 the sponsoring broker.
15     "Employee" or other derivative of the word "employee", when
16 used to refer to, describe, or delineate the relationship
17 between a real estate broker and a real estate salesperson,
18 another real estate broker, or a leasing agent, shall be
19 construed to include an independent contractor relationship,
20 provided that a written agreement exists that clearly
21 establishes and states the relationship. All responsibilities
22 of a broker shall remain.
23     "Escrow moneys" means all moneys, promissory notes or any
24 other type or manner of legal tender or financial consideration
25 deposited with any person for the benefit of the parties to the
26 transaction. A transaction exists once an agreement has been
27 reached and an accepted real estate contract signed or lease
28 agreed to by the parties. Escrow moneys includes without
29 limitation earnest moneys and security deposits, except those
30 security deposits in which the person holding the security
31 deposit is also the sole owner of the property being leased and
32 for which the security deposit is being held.
33     "Exclusive brokerage agreement" means a written brokerage
34 agreement that provides that the sponsoring broker has the sole

 

 

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1 right, through one or more sponsored licensees, to act as the
2 exclusive designated agent or representative of the client and
3 that meets the requirements of Section 15-75 of this Act.
4     "Inoperative" means a status of licensure where the
5 licensee holds a current license under this Act, but the
6 licensee is prohibited from engaging in licensed activities
7 because the licensee is unsponsored or the license of the
8 sponsoring broker with whom the licensee is associated or by
9 whom he or she is employed is currently expired, revoked,
10 suspended, or otherwise rendered invalid under this Act.
11     "Leasing Agent" means a person who is employed by a real
12 estate broker to engage in licensed activities limited to
13 leasing residential real estate who has obtained a license as
14 provided for in Section 5-5 of this Act.
15     "License" means the document issued by OBRE certifying that
16 the person named thereon has fulfilled all requirements
17 prerequisite to licensure under this Act.
18     "Licensed activities" means those activities listed in the
19 definition of "broker" under this Section.
20     "Licensee" means any person, as defined in this Section,
21 who holds a valid unexpired license as a real estate broker,
22 real estate salesperson, or leasing agent.
23     "Listing presentation" means a communication between a
24 real estate broker or salesperson and a consumer in which the
25 licensee is attempting to secure a brokerage agreement with the
26 consumer to market the consumer's real estate for sale or
27 lease.
28     "Managing broker" means a broker who has supervisory
29 responsibilities for licensees in one or, in the case of a
30 multi-office company, more than one office and who has been
31 appointed as such by the sponsoring broker.
32     "Medium of advertising" means any method of communication
33 intended to influence the general public to use or purchase a
34 particular good or service or real estate.

 

 

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1     "Ministerial acts" means those acts that a licensee may
2 perform for a consumer that are informative or clerical in
3 nature and do not rise to the level of active representation on
4 behalf of a consumer. Examples of these acts include without
5 limitation (i) responding to phone inquiries by consumers as to
6 the availability and pricing of brokerage services, (ii)
7 responding to phone inquiries from a consumer concerning the
8 price or location of property, (iii) attending an open house
9 and responding to questions about the property from a consumer,
10 (iv) setting an appointment to view property, (v) responding to
11 questions of consumers walking into a licensee's office
12 concerning brokerage services offered or particular
13 properties, (vi) accompanying an appraiser, inspector,
14 contractor, or similar third party on a visit to a property,
15 (vii) describing a property or the property's condition in
16 response to a consumer's inquiry, (viii) completing business or
17 factual information for a consumer on an offer or contract to
18 purchase on behalf of a client, (ix) showing a client through a
19 property being sold by an owner on his or her own behalf, or
20 (x) referral to another broker or service provider.
21     "OBRE" means the Office of Banks and Real Estate.
22     "Office" means a real estate broker's place of business
23 where the general public is invited to transact business and
24 where records may be maintained and licenses displayed, whether
25 or not it is the broker's principal place of business.
26     "Person" means and includes individuals, entities,
27 corporations, limited liability companies, registered limited
28 liability partnerships, and partnerships, foreign or domestic,
29 except that when the context otherwise requires, the term may
30 refer to a single individual or other described entity.
31     "Personal assistant" means a licensed or unlicensed person
32 who has been hired for the purpose of aiding or assisting a
33 sponsored licensee in the performance of the sponsored
34 licensee's job.

 

 

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1     "Pocket card" means the card issued by OBRE to signify that
2 the person named on the card is currently licensed under this
3 Act.
4     "Pre-license school" means a school licensed by OBRE
5 offering courses in subjects related to real estate
6 transactions, including the subjects upon which an applicant is
7 examined in determining fitness to receive a license.
8     "Pre-renewal period" means the period between the date of
9 issue of a currently valid license and the license's expiration
10 date.
11     "Real estate" means and includes leaseholds as well as any
12 other interest or estate in land, whether corporeal,
13 incorporeal, freehold, or non-freehold, including timeshare
14 interests, and whether the real estate is situated in this
15 State or elsewhere.
16     "Real Estate Administration and Disciplinary Board" or
17 "Board" means the Real Estate Administration and Disciplinary
18 Board created by Section 25-10 of this Act.
19     "Salesperson" means any individual, other than a real
20 estate broker or leasing agent, who is employed by a real
21 estate broker or is associated by written agreement with a real
22 estate broker as an independent contractor and participates in
23 any activity described in the definition of "broker" under this
24 Section.
25     "Sponsoring broker" means the broker who has issued a
26 sponsor card to a licensed salesperson, another licensed
27 broker, or a leasing agent.
28     "Sponsor card" means the temporary permit issued by the
29 sponsoring real estate broker certifying that the real estate
30 broker, real estate salesperson, or leasing agent named thereon
31 is employed by or associated by written agreement with the
32 sponsoring real estate broker, as provided for in Section 5-40
33 of this Act.
34 (Source: P.A. 91-245, eff. 12-31-99; 91-585, eff. 1-1-00;

 

 

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1 91-603, eff. 1-1-00; 91-702, eff. 5-12-00; 92-217, eff.
2 8-2-01.)
 
3     (225 ILCS 454/5-30)
4     (Section scheduled to be repealed on January 1, 2010)
5     Sec. 5-30. Education requirements to obtain an original
6 broker or salesperson license.
7     (a) All applicants for a broker's license, except
8 applicants who meet the criteria set forth in subsection (c) of
9 this Section shall (i) give satisfactory evidence of having
10 completed at least 120 classroom hours, 45 of which shall be
11 those hours required to obtain a salesperson's license plus 15
12 hours in brokerage administration courses, in real estate
13 courses approved by the Advisory Council or (ii) for applicants
14 who currently hold a valid real estate salesperson's license,
15 give satisfactory evidence of having completed at least 75
16 hours in real estate courses, not including the courses that
17 are required to obtain a salesperson's license, approved by the
18 Advisory Council.
19     (b) All applicants for a salesperson's license, except
20 applicants who meet the criteria set forth in subsection (c) of
21 this Section shall give satisfactory evidence that they have
22 completed at least 45 hours of instruction in real estate
23 courses approved by the Advisory Council.
24     (c) The requirements specified in subsections (a) and (b)
25 of this Section do not apply to applicants who: (1) are
26 currently admitted to practice law by the Supreme Court of
27 Illinois and are currently in active standing; or (2) show
28 evidence of receiving a baccalaureate degree including courses
29 involving real estate or related material from a college or
30 university approved by the Advisory Council.
31     (d) A minimum of 15 of the required hours of pre-license
32 education shall be in the areas of Article 15 of this Act,
33 disclosure and environmental issues, or any other currently

 

 

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1 topical areas that are determined by the Advisory Council.
2 (Source: P.A. 91-245, eff. 12-31-99.)
 
3     (225 ILCS 454/5-50)
4     (Section scheduled to be repealed on January 1, 2010)
5     Sec. 5-50. Expiration date and renewal period of broker,
6 salesperson, or leasing agent license; sponsoring broker;
7 register of licensees; pocket card.
8     (a) The expiration date and renewal period for each license
9 issued under this Act shall be set by rule. Except as otherwise
10 provided in Section 5-55 of this Act, the holder of a license
11 may renew the license within 90 days preceding the expiration
12 date thereof by paying the fees specified by rule. Upon written
13 request from the sponsoring broker, OBRE shall prepare and mail
14 to the sponsoring broker a listing of licensees under this Act
15 who, according to the records of OBRE, are sponsored by that
16 broker. Every licensee associated with or employed by a broker
17 whose license is revoked, suspended, terminated, or expired
18 shall be considered as inoperative until such time as the
19 sponsoring broker's license is reinstated or renewed, or the
20 licensee changes employment as set forth in subsection (c) of
21 Section 5-40 of this Act.
22     (b) OBRE shall establish and maintain a register of all
23 persons currently licensed by the State and shall issue and
24 prescribe a form of pocket card. Upon payment by a licensee of
25 the appropriate fee as prescribed by rule for engagement in the
26 activity for which the licensee is qualified and holds a
27 license for the current period, OBRE shall issue a pocket card
28 to the licensee. The pocket card shall be verification that the
29 required fee for the current period has been paid and shall
30 indicate that the person named thereon is licensed for the
31 current renewal period as a broker, salesperson, or leasing
32 agent as the case may be. The pocket card shall further
33 indicate that the person named thereon is authorized by OBRE to

 

 

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1 engage in the licensed activity appropriate for his or her
2 status (broker, salesperson, or leasing agent). Each licensee
3 shall carry on his or her person his or her pocket card or, if
4 such pocket card has not yet been issued, a properly issued
5 sponsor card when engaging in any licensed activity and shall
6 display the same on demand.
7     (c) Any person licensed as a broker shall be entitled at
8 any renewal date to change his or her license status from
9 broker to salesperson.
10 (Source: P.A. 91-245, eff. 12-31-99.)
 
11     (225 ILCS 454/5-70)
12     (Section scheduled to be repealed on January 1, 2010)
13     Sec. 5-70. Continuing education requirement; broker or
14 salesperson.
15     (a) The requirements of this Section apply to all licensees
16 who have had a license for less than 15 years as of January 1,
17 1992.
18     (b) Except as otherwise provided in this Section, each
19 person who applies for renewal of his or her license as a real
20 estate broker or real estate salesperson must successfully
21 complete real estate continuing education courses approved by
22 the Advisory Council at the rate of 6 hours per year or its
23 equivalent. In addition, beginning with the pre-renewal period
24 for broker licensees that begins after the effective date of
25 this amendatory Act of the 93rd General Assembly, to renew a
26 real estate broker's license, the licensee must successfully
27 complete a 6-hour broker management continuing education
28 course approved by OBRE. Successful completion of the course
29 shall include achieving a passing score as provided by rule on
30 a test developed and administered in accordance with rules
31 adopted by the OBRE. Beginning on the first day of the
32 pre-renewal period for broker licensees that begins after the
33 effective date of this amendatory Act of the 93rd General

 

 

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1 Assembly, the 6-hour broker management continuing education
2 course must be completed by all persons receiving their initial
3 broker's license within 180 days after the date of initial
4 licensure as a broker. No license may be renewed except upon
5 the successful completion of the required courses or their
6 equivalent or upon a waiver of those requirements for good
7 cause shown as determined by the Commissioner with the
8 recommendation of the Advisory Council. The requirements of
9 this Article are applicable to all brokers and salespersons
10 except those brokers and salespersons who, during the
11 pre-renewal period:
12         (1) serve in the armed services of the United States;
13         (2) serve as an elected State or federal official;
14         (3) serve as a full-time employee of OBRE; or
15         (4) are admitted to practice law pursuant to Illinois
16     Supreme Court rule.
17     (c) A person who is issued an initial license as a real
18 estate salesperson less than one year prior to the expiration
19 date of that license shall not be required to complete
20 continuing education as a condition of license renewal. A
21 person who is issued an initial license as a real estate broker
22 less than one year prior to the expiration date of that license
23 and who has not been licensed as a real estate salesperson
24 during the pre-renewal period shall not be required to complete
25 continuing education as a condition of license renewal. A
26 person receiving an initial license as a real estate broker
27 during the 90 days before the broker renewal date shall not be
28 required to complete the broker management continuing
29 education course provided for in subsection (b) of this Section
30 as a condition of initial license renewal.
31     (d) The continuing education requirement for salespersons
32 and brokers shall consist of a core curriculum and an elective
33 curriculum, to be established by the Advisory Council. In
34 meeting the continuing education requirements of this Act, at

 

 

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1 least 3 hours per year or their equivalent shall be required to
2 be completed in the core curriculum. In establishing the core
3 curriculum, the Advisory Council shall consider subjects that
4 will educate licensees on recent changes in applicable laws and
5 new laws and refresh the licensee on areas of the license law
6 and OBRE policy that the Advisory Council deems appropriate,
7 and any other areas that the Advisory Council deems timely and
8 applicable in order to prevent violations of this Act and to
9 protect the public. In establishing the elective curriculum,
10 the Advisory Council shall consider subjects that cover the
11 various aspects of the practice of real estate that are covered
12 under the scope of this Act. However, the elective curriculum
13 shall not include any offerings referred to in Section 5-85 of
14 this Act.
15     (e) The subject areas of continuing education courses
16 approved by the Advisory Council may include without limitation
17 the following:
18         (1) license law and escrow;
19         (2) antitrust;
20         (3) fair housing;
21         (4) agency;
22         (5) appraisal;
23         (6) property management;
24         (7) residential brokerage;
25         (8) farm property management;
26         (9) rights and duties of sellers, buyers, and brokers;
27         (10) commercial brokerage and leasing; and
28         (11) real estate financing.
29     (f) In lieu of credit for those courses listed in
30 subsection (e) of this Section, credit may be earned for
31 serving as a licensed instructor in an approved course of
32 continuing education. The amount of credit earned for teaching
33 a course shall be the amount of continuing education credit for
34 which the course is approved for licensees taking the course.

 

 

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1     (g) Credit hours may be earned for self-study programs
2 approved by the Advisory Council.
3     (h) A broker or salesperson may earn credit for a specific
4 continuing education course only once during the prerenewal
5 period.
6     (i) No more than 6 hours of continuing education credit may
7 be earned in one calendar day.
8     (j) To promote the offering of a uniform and consistent
9 course content, the OBRE may provide for the development of a
10 single broker management course to be offered by all continuing
11 education providers who choose to offer the broker management
12 continuing education course. The OBRE may contract for the
13 development of the 6-hour broker management continuing
14 education course with an outside vendor and, if the course is
15 developed in this manner, the OBRE shall license the use of
16 that course to all approved continuing education providers who
17 wish to provide the course.
18 (Source: P.A. 91-245, eff. 12-31-99.)
 
19     (225 ILCS 454/15-75 new)
20     (Section scheduled to be repealed on January 1, 2010)
21     Sec. 15-75. Exclusive brokerage agreements. All exclusive
22 brokerage agreements must specify that the sponsoring broker,
23 through one or more sponsored licensees, must provide, at a
24 minimum, the following services:
25         (1) accept delivery of and present to the client offers
26     and counteroffers to buy, sell, or lease the client's
27     property or the property the client seeks to purchase or
28     lease;
29         (2) assist the client in developing, communicating,
30     negotiating, and presenting offers, counteroffers, and
31     notices that relate to the offers and counteroffers until a
32     lease or purchase agreement is signed and all contingencies
33     are satisfied or waived; and

 

 

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1         (3) answer the client's questions relating to the
2     offers, counteroffers, notices, and contingencies.
 
3     (225 ILCS 454/20-20)
4     (Section scheduled to be repealed on January 1, 2010)
5     Sec. 20-20. Disciplinary actions; causes. OBRE may refuse
6 to issue or renew a license, may place on probation, suspend,
7 or revoke any license, or may censure, reprimand, or otherwise
8 discipline or impose a civil fine not to exceed $25,000 upon
9 any licensee hereunder for any one or any combination of the
10 following causes:
11     (a) When the applicant or licensee has, by false or
12 fraudulent representation, obtained or sought to obtain a
13 license.
14     (b) When the applicant or licensee has been convicted of
15 any crime, an essential element of which is dishonesty or fraud
16 or larceny, embezzlement, or obtaining money, property, or
17 credit by false pretenses or by means of a confidence game, has
18 been convicted in this or another state of a crime that is a
19 felony under the laws of this State, or has been convicted of a
20 felony in a federal court.
21     (c) When the applicant or licensee has been adjudged to be
22 a person under legal disability or subject to involuntary
23 admission or to meet the standard for judicial admission as
24 provided in the Mental Health and Developmental Disabilities
25 Code.
26     (d) When the licensee performs or attempts to perform any
27 act as a broker or salesperson in a retail sales establishment
28 from an office, desk, or space that is not separated from the
29 main retail business by a separate and distinct area within the
30 establishment.
31     (e) Discipline of a licensee by another state, the District
32 of Columbia, a territory, a foreign nation, a governmental
33 agency, or any other entity authorized to impose discipline if

 

 

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1 at least one of the grounds for that discipline is the same as
2 or the equivalent of one of the grounds for discipline set
3 forth in this Act, in which case the only issue will be whether
4 one of the grounds for that discipline is the same or
5 equivalent to one of the grounds for discipline under this Act.
6     (f) When the applicant or licensee has engaged in real
7 estate activity without a license or after the licensee's
8 license was expired or while the license was inoperative.
9     (g) When the applicant or licensee attempts to subvert or
10 cheat on the Real Estate License Exam or continuing education
11 exam or aids and abets an applicant to subvert or cheat on the
12 Real Estate License Exam or continuing education exam
13 administered pursuant to this Act.
14     (h) When the licensee in performing, attempting to perform,
15 or pretending to perform any act as a broker, salesperson, or
16 leasing agent or when the licensee in handling his or her own
17 property, whether held by deed, option, or otherwise, is found
18 guilty of:
19         (1) Making any substantial misrepresentation or
20     untruthful advertising.
21         (2) Making any false promises of a character likely to
22     influence, persuade, or induce.
23         (3) Pursuing a continued and flagrant course of
24     misrepresentation or the making of false promises through
25     licensees, employees, agents, advertising, or otherwise.
26         (4) Any misleading or untruthful advertising, or using
27     any trade name or insignia of membership in any real estate
28     organization of which the licensee is not a member.
29         (5) Acting for more than one party in a transaction
30     without providing written notice to all parties for whom
31     the licensee acts.
32         (6) Representing or attempting to represent a broker
33     other than the sponsoring broker.
34         (7) Failure to account for or to remit any moneys or

 

 

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1     documents coming into his or her possession that belong to
2     others.
3         (8) Failure to maintain and deposit in a special
4     account, separate and apart from personal and other
5     business accounts, all escrow moneys belonging to others
6     entrusted to a licensee while acting as a real estate
7     broker, escrow agent, or temporary custodian of the funds
8     of others or failure to maintain all escrow moneys on
9     deposit in the account until the transactions are
10     consummated or terminated, except to the extent that the
11     moneys, or any part thereof, shall be disbursed prior to
12     the consummation or termination in accordance with (i) the
13     written direction of the principals to the transaction or
14     their duly authorized agents, (ii) directions providing
15     for the release, payment, or distribution of escrow moneys
16     contained in any written contract signed by the principals
17     to the transaction or their duly authorized agents, or
18     (iii) pursuant to an order of a court of competent
19     jurisdiction. The account shall be noninterest bearing,
20     unless the character of the deposit is such that payment of
21     interest thereon is otherwise required by law or unless the
22     principals to the transaction specifically require, in
23     writing, that the deposit be placed in an interest bearing
24     account.
25         (9) Failure to make available to the real estate
26     enforcement personnel of OBRE during normal business hours
27     all escrow records and related documents maintained in
28     connection with the practice of real estate within 24 hours
29     of a request for those documents by OBRE personnel.
30         (10) Failing to furnish copies upon request of all
31     documents relating to a real estate transaction to all
32     parties executing them.
33         (11) Failure of a sponsoring broker to timely provide
34     information, sponsor cards, or termination of licenses to

 

 

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1     OBRE.
2         (12) Engaging in dishonorable, unethical, or
3     unprofessional conduct of a character likely to deceive,
4     defraud, or harm the public.
5         (13) Commingling the money or property of others with
6     his or her own.
7         (14) Employing any person on a purely temporary or
8     single deal basis as a means of evading the law regarding
9     payment of commission to nonlicensees on some contemplated
10     transactions.
11         (15) Permitting the use of his or her license as a
12     broker to enable a salesperson or unlicensed person to
13     operate a real estate business without actual
14     participation therein and control thereof by the broker.
15         (16) Any other conduct, whether of the same or a
16     different character from that specified in this Section,
17     that constitutes dishonest dealing.
18         (17) Displaying a "for rent" or "for sale" sign on any
19     property without the written consent of an owner or his or
20     her duly authorized agent or advertising by any means that
21     any property is for sale or for rent without the written
22     consent of the owner or his or her authorized agent.
23         (18) Failing to provide information requested by OBRE,
24     within 30 days of the request, either as the result of a
25     formal or informal complaint to OBRE or as a result of a
26     random audit conducted by OBRE, which would indicate a
27     violation of this Act.
28         (19) Advertising by means of a blind advertisement,
29     except as otherwise permitted in Section 10-30 of this Act.
30         (20) Offering guaranteed sales plans, as defined in
31     clause (A) of this subdivision (20), except to the extent
32     hereinafter set forth:
33             (A) A "guaranteed sales plan" is any real estate
34         purchase or sales plan whereby a licensee enters into a

 

 

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1         conditional or unconditional written contract with a
2         seller by the terms of which a licensee agrees to
3         purchase a property of the seller within a specified
4         period of time at a specific price in the event the
5         property is not sold in accordance with the terms of a
6         listing contract between the sponsoring broker and the
7         seller or on other terms acceptable to the seller.
8             (B) A licensee offering a guaranteed sales plan
9         shall provide the details and conditions of the plan in
10         writing to the party to whom the plan is offered.
11             (C) A licensee offering a guaranteed sales plan
12         shall provide to the party to whom the plan is offered
13         evidence of sufficient financial resources to satisfy
14         the commitment to purchase undertaken by the broker in
15         the plan.
16             (D) Any licensee offering a guaranteed sales plan
17         shall undertake to market the property of the seller
18         subject to the plan in the same manner in which the
19         broker would market any other property, unless the
20         agreement with the seller provides otherwise.
21             (E) Any licensee who fails to perform on a
22         guaranteed sales plan in strict accordance with its
23         terms shall be subject to all the penalties provided in
24         this Act for violations thereof and, in addition, shall
25         be subject to a civil fine payable to the party injured
26         by the default in an amount of up to $25,000.
27         (21) Influencing or attempting to influence, by any
28     words or acts, a prospective seller, purchaser, occupant,
29     landlord, or tenant of real estate, in connection with
30     viewing, buying, or leasing real estate, so as to promote
31     or tend to promote the continuance or maintenance of
32     racially and religiously segregated housing or so as to
33     retard, obstruct, or discourage racially integrated
34     housing on or in any street, block, neighborhood, or

 

 

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1     community.
2         (22) Engaging in any act that constitutes a violation
3     of any provision of Article 3 of the Illinois Human Rights
4     Act, whether or not a complaint has been filed with or
5     adjudicated by the Human Rights Commission.
6         (23) Inducing any party to a contract of sale or lease
7     or brokerage agreement to break the contract of sale or
8     lease or brokerage agreement for the purpose of
9     substituting, in lieu thereof, a new contract for sale or
10     lease or brokerage agreement with a third party.
11         (24) Negotiating a sale, exchange, or lease of real
12     estate directly with any person if the licensee knows that
13     the person has a written exclusive brokerage agreement with
14     another broker, unless specifically authorized by that
15     broker.
16         (25) When a licensee is also an attorney, acting as the
17     attorney for either the buyer or the seller in the same
18     transaction in which the licensee is acting or has acted as
19     a broker or salesperson.
20         (26) Advertising or offering merchandise or services
21     as free if any conditions or obligations necessary for
22     receiving the merchandise or services are not disclosed in
23     the same advertisement or offer. These conditions or
24     obligations include without limitation the requirement
25     that the recipient attend a promotional activity or visit a
26     real estate site. As used in this subdivision (26), "free"
27     includes terms such as "award", "prize", "no charge", "free
28     of charge", "without charge", and similar words or phrases
29     that reasonably lead a person to believe that he or she may
30     receive or has been selected to receive something of value,
31     without any conditions or obligations on the part of the
32     recipient.
33         (27) Disregarding or violating any provision of the
34     Land Sales Registration Act of 1989, the Illinois Real

 

 

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1     Estate Time-Share Act, or the published rules promulgated
2     by OBRE to enforce those Acts.
3         (28) Violating the terms of a disciplinary order issued
4     by OBRE.
5         (29) Paying compensation in violation of Article 10 of
6     this Act.
7         (30) Requiring a party to a transaction who is not a
8     client of the licensee to allow the licensee to retain a
9     portion of the escrow moneys for payment of the licensee's
10     commission or expenses as a condition for release of the
11     escrow moneys to that party.
12         (31) Disregarding or violating any provision of this
13     Act or the published rules promulgated by OBRE to enforce
14     this Act or aiding or abetting any individual, partnership,
15     registered limited liability partnership, limited
16     liability company, or corporation in disregarding any
17     provision of this Act or the published rules promulgated by
18     OBRE to enforce this Act.
19         (32) Failing to provide the minimum services required
20     by Section 15-75 of this Act when acting under an exclusive
21     brokerage agreement.
22 (Source: P.A. 91-245, eff. 12-31-99.)
 
23     Section 99. Effective date. This Act takes effect upon
24 becoming law.".